NSSC to Raise Stainless Steel Wire Rod Price for December

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) announced on Wednesday the firm raises base price for SUS304 stainless steel wire rod by 80,000 yen per tonne for December contracts and January 2007 shipment from the previous month. The firm will pass the increase in raw material costs for September-November on the selling price when nickel price continued increasing and chrome price increased after October. The firm has raised price for stainless steel wire rod three times in 2006. The total hike range became to 210,000 yen per tonne since June contracts.NSSC also announced the firm revises up extra charge for nickel series stainless steel wire rod for December contracts. Hike range differs by nickel contain volume. The firm raised extra charge for SUSXM7 as well, used for screw and fastener, when the market price is increasing at overseas and the price remained at the level with no profitability.The firm raised base price for nickel series stainless steel wire rod by 40,000 yen per tonne for June contracts and by 90,000 yen for September contracts. Monthly average of nickel price at London Metal Exchange was US$ 13.67 per pound in September and US$ 14.83 in October, which is US$14.23 this month as on November 20. NSSC reflects the cost increase on the selling price.Domestic stainless steel wire rod demand is increasing by about 20% from the previous year in Japan. Supply is tight due to high material prices. Overseas demand is also steady mainly in Asia. NSSC continues full production. Market price is higher in Asian market than in Japan to reflect construction works for output capacity expansion at South Korean maker. NSSC aims to revise the selling price along material price fluctuation and supply and demand balance.